LIC Child Future Plan 185 Calculator
Plan No. 185 (UIN: 512N242V01)
Important Notes
- Premiums shown are estimated using the official LIC Child Future Plan 185 premium tables.
- Simple Reversionary Bonus and Final Additional Bonus are not guaranteed and depend on LIC’s annual declaration.
- Survival Benefits are payable as 25% of Sum Assured (5 years before maturity), 10% each during the next four years, and the remaining 50% plus vested bonus at maturity.
- Death Benefit is payable as per LIC policy conditions along with applicable vested bonuses.
- Premium Waiver Benefit is optional and is available subject to LIC eligibility conditions.
- The policy acquires surrender value after payment of at least three full years’ premiums.
Introduction to LIC Child Future Plan 185
LIC Child Future Plan 185 was a child-focused life insurance policy introduced by the Life Insurance Corporation of India to help parents build financial security for their children’s future. The plan combined life insurance protection with long-term savings, making it suitable for meeting important financial goals such as higher education, marriage, and other major life milestones.
Launch and Withdrawal Details
Launch Date:
LIC introduced Child Future Plan 185 in the early 2000s. Although the exact launch date is not officially documented, the plan was available before 2007.
Withdrawal Date:
The plan was discontinued for new sales on 1 January 2014 as part of LIC’s regular product revisions and the introduction of newer insurance plans with updated features.
What is LIC Child Future Plan 185?
LIC Child Future Plan 185 was a participating (with-profits) insurance policy created for children from birth up to 12 years of age. The policy enabled parents or guardians to secure their child’s future by building a financial corpus while also providing life insurance protection.
Some of the key characteristics of the plan included:
- Policy term ranging from 11 to 27 years.
- Premium Paying Term (PPT) generally limited to 6 years.
- Insurance cover throughout the policy term with an additional 7 years of extended life cover after policy completion.
- Benefits including survival, maturity, and death payouts.
- Multiple premium payment options such as yearly, half-yearly, quarterly, and salary deduction.
- Guaranteed policy benefits along with bonuses declared by LIC from time to time.
Eligibility Criteria
To purchase LIC Child Future Plan 185, the following eligibility conditions applied:
- Child’s Entry Age: 0 to 12 years (last birthday).
- Maturity Age: 23 to 27 years (last birthday).
- Policy Term: 11 to 27 years.
- Minimum Sum Assured: ₹1,00,000.
- Maximum Sum Assured: ₹1 Crore.
- Premium Paying Term: Usually 6 years or shorter, depending on the selected policy term.
Eligibility Details
| Parameter | Minimum | Maximum |
|---|---|---|
| Entry Age (Last Birthday) | 0 Years | 12 Years |
| Maturity Age (Last Birthday) | 23 Years | 27 Years |
| Sum Assured | ₹1,00,000 | ₹1,00,00,000 |
| Policy Term | 11 Years | 27 Years |
| Premium Paying Term | 6 Years | Policy Term minus 5 Years |
Features and Benefits
LIC Child Future Plan 185 offered a combination of insurance protection and long-term savings, helping parents prepare financially for their child’s future.
Comprehensive Life Protection
The policy provided insurance cover on the child’s life throughout the policy duration. In addition, the life cover continued for another seven years after the completion of the policy term, offering extended financial protection.
Survival Benefits
The policy paid survival benefits at specified stages before maturity, helping families meet educational and other important expenses during the child’s growing years.
For example:
- 25% of the Sum Assured was payable five years before the policy matured.
- Another 25% of the Sum Assured was paid on completion of the policy term.
Maturity Benefit
If the child survived until the end of the policy term, the policyholder received:
- Remaining Sum Assured.
- Accrued bonuses, if declared by LIC.
The maturity proceeds could be utilized for higher education, marriage, or any other significant financial requirement.
Death Benefit
If the insured child passed away during the policy term, LIC paid:
- Sum Assured.
- Accumulated bonuses, wherever applicable.
If death occurred during the Premium Paying Term, all future premiums were waived while the policy benefits continued without interruption.
Premium Waiver Benefit
One of the important features of the plan was the Premium Waiver Benefit.
If the proposer (generally the parent or guardian paying the premiums) died during the Premium Paying Term:
- All remaining premiums were waived.
- The policy continued without any reduction in benefits.
- The child remained fully protected until maturity.
Bonus Benefit
Since LIC Child Future Plan 185 was a participating policy, it became eligible for bonuses declared by LIC every year.
These bonuses accumulated during the policy term and increased the final maturity value payable under the policy.
Flexible Premium Payment Options
The policy allowed policyholders to choose a convenient premium payment frequency, including:
- Yearly
- Half-Yearly
- Quarterly
- Salary Deduction
The Premium Paying Term generally remained around six years, depending on the selected policy duration.
Surrender Value
The policy could be surrendered after completing three policy years.
Upon surrender, LIC paid the applicable Guaranteed Surrender Value in accordance with the policy conditions.
How Does the LIC Child Future Plan 185 Calculator Work?
The LIC Child Future Plan 185 Calculator is a useful planning tool that helps parents estimate the premium amount and expected policy benefits based on various policy details. By entering basic information, users can understand the financial commitment and projected returns before purchasing the policy.
Information Required by the Calculator
To generate accurate estimates, the calculator generally requires the following details:
- Child’s age at the beginning of the policy.
- Selected policy term (between 11 and 27 years).
- Desired Sum Assured (minimum ₹1,00,000).
- Premium payment frequency (Yearly, Half-Yearly, or Quarterly).
- Premium Paying Term, which is generally six years or less depending on the selected policy term.
Calculations Performed by the Calculator
After receiving the required inputs, the calculator estimates several important policy values, including:
- Premium amount payable according to the selected payment mode.
- Total premium payable during the Premium Paying Term.
- Estimated maturity benefit, including the guaranteed Sum Assured and projected bonuses.
- Survival benefit payments at the applicable stages of the policy.
- Death benefit amount payable under different situations.
- Premium Waiver Benefit in the event of the proposer’s death.
These calculations help users understand the overall financial benefits available under the policy.
Benefits of Using the Calculator
Using the LIC Child Future Plan 185 Calculator offers several advantages, such as:
Better Financial Planning
Parents can estimate the premium commitment in advance and plan their finances accordingly.
Clear Benefit Estimates
The calculator provides an overview of maturity benefits, survival payouts, and death benefits, making the policy easier to understand.
Easy Policy Comparison
Users can compare different combinations of policy terms and Sum Assured values to select the option that best suits their financial goals.
Understanding Premium Waiver Benefits
The calculator also demonstrates how the Premium Waiver Benefit protects the child’s future if the proposer passes away during the Premium Paying Term.
Sample Calculation (Illustrative)
The following example is provided only for illustration purposes.
Assumptions:
- Child’s Age: 2 Years
- Policy Term: 25 Years
- Sum Assured: ₹1,00,000
- Premium Paying Term: 6 Years
- Premium Payment Mode: Yearly
Estimated Results:
- Approximate Annual Premium: ₹10,158
- Total Premium Paid: ₹60,948 (₹10,158 × 6)
The policy may provide:
- Survival Benefit equal to 25% of the Sum Assured five years before maturity.
- Another 25% of the Sum Assured at the end of the policy term.
- Applicable bonuses declared by LIC.
- Death Benefit consisting of the Sum Assured along with accrued bonuses, wherever applicable.
Why Use LIC Child Future Plan 185 Calculator?
The calculator helps parents and guardians understand the policy’s financial commitments and expected benefits before making a decision.
It enables users to:
- Estimate premium payments based on the selected Sum Assured and policy term.
- Understand when survival benefits become payable.
- Evaluate the impact of bonuses on the final maturity amount.
- Learn about the protection available in case of the death of either the child or the proposer.
This makes financial planning simpler and more transparent.
Importance of Child Insurance Plans
Child insurance plans such as LIC Child Future Plan 185 play an important role in securing a child’s financial future.
These plans help families by:
- Building a savings corpus for higher education, marriage, and other future goals.
- Providing life insurance protection during the policy term.
- Offering financial security against unforeseen events affecting the child or the proposer.
- Encouraging disciplined long-term savings for important life milestones.
Alternatives After Withdrawal of LIC Child Future Plan 185
Following the withdrawal of Plan 185, LIC introduced several other child-oriented insurance plans to meet similar financial objectives.
Some of the available alternatives include:
- LIC Jeevan Labh Child Plan
- LIC New Children’s Money Back Plan
- LIC New Child Career Plan
These plans continue to provide insurance protection and savings benefits with updated features. Interested customers should consult an LIC agent or visit the official LIC website to explore the latest child insurance products.
Frequently Asked Questions
What is LIC Child Future Plan 185?
LIC Child Future Plan 185 was a participating child endowment insurance policy that combined life insurance protection with long-term savings to support a child’s future education, marriage, and other important financial needs.
What was the eligible entry age under this plan?
Children between 0 and 12 years of age (last birthday) were eligible for coverage under the policy.
What was the policy term?
The policy term could be selected between 11 years and 27 years, depending on the policyholder’s preference.
How long was the Premium Paying Term?
The Premium Paying Term was generally 6 years or less, depending on the selected policy duration.
What benefits were available under the plan?
The policy offered several benefits, including:
- Survival Benefits.
- Maturity Benefit with bonuses.
- Death Benefit.
- Premium Waiver Benefit in the event of the proposer’s death.
Conclusion
LIC Child Future Plan 185 was a well-designed child insurance policy that combined life insurance protection with long-term savings to help parents prepare for important milestones such as higher education and marriage. Although the plan was withdrawn from sale in January 2014, it continues to serve as a valuable example of a child endowment plan offering comprehensive financial security.
The LIC Child Future Plan 185 Calculator remains a useful tool for estimating premiums, maturity benefits, survival payouts, and overall policy value, helping parents better understand how similar child insurance plans can support long-term financial planning.
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